Indonesian Organization forbids Muslims to use crypto by issuing a decree. The organizations that issued the decree are Indonesia’s Tarjih Council and Central Executive Tajdid of Muhammadiyah. As told by them, the basis for his decree is the volatility of cryptocurrencies. At the same time, they also consider the lack of state backing of crypto a big problem. It is the first time that I am hearing about a country’s authority restricting crypto but only for a particular religion.
Indonesian Muslims are now restricted to access crypto
The authorities passed this decree by the issuance of a fatwa that is against the use of crypto in the country. The step came after the authorities tried to explain and discourage the use of crypto. But I think that didn’t help much, and the citizens continued to associate themselves with this asset. And now, it has been officially banned both as an investment and a medium of exchange. This is written on their website.
Cryptocurrencies are volatile, and the heavy fluctuation is the reason why this fatwa has been issued. Since there is no asset backing Bitcoin, it is considered to be dubious by the authorities. But they do not understand that Bitcoin is an asset itself and an asset doesn’t need any backing. For example, Gold doesn’t need to be backed by anything because it is valuable within itself.
With this latest step, the authorities are also claiming to protect the consumers from the problems that arise with Bitcoin. Since BTC hasn’t been recognized as a medium of exchange, it shouldn’t be used as such in the country.
The only reason that the Indonesian Organization forbids Muslims to use crypto is the volatility that is present in crypto. But there is no understanding of why this volatility is present. Since there are no regulations, the prices can move any way by any amount. Then there is the fact that an asset does not back Bitcoin, but it needs to be understood that it is an asset. All this doesn’t matter much because the fatwa is not legally binding.
What are your thoughts on the decree issued by the Indonesian Religious Organization? And do you think this will stop people from investing in crypto? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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